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E-commerce Business

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quest71

Junior Member
What is the name of your state (only U.S. law)? California

I need some advice about starting an e-commerce site. Do I need a re-sellers permit or business license? or is a sole proprietorship sufficient?

I am a little confused if my place of business is in California but my products are being purchased in various states. How does that work?

I would to like to open up an online store where I can have products drop-shipped.

Thanks in advance!
 


FlyingRon

Senior Member
Greetings,

If you are selling tangible items, you need to collect and remit sales tax to California (and possibly your local jurisdiction) for sales to California residents. Information on how to set this up is on the state site here: http://www.boe.ca.gov

For sales external to California, currently you are not responsible for collecting sales tax.

If you are selling certain items (particularly alcohol and tobacco), there are other specific requirements both on how you conduct your business and how you ship things.

Lots of useful information on small businesses are available from a variety of places from local small business areas to as mundane places as your public library.
 

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